Good morning, everyone. Thank you very much for joining us today at our 2019 Capital Markets Day. We are delighted to have you all here. I think we've got a very exciting day for you all. You can see the agenda behind me on the screen. We'll start off with Max, our CEO, talking about our strategy and our key growth drivers. We will move on to product. We'll have Mark Winterburn, our Chief Product Officer, giving an overview of how we invest in our product. We've got six of our product directors on stage for you today, giving you some insight into how we address the six key drivers of growth that Temenos has. We will move on to Alexa Guenoun, our Chief Client Officer, who will be talking about our implementation and our partner work.
We're delighted to have one of our clients here, Bank Leumi, who will talk about their transformation journey as well and how they partner with Temenos. We'll finish up with Takis, our CFO, talking about how we drive and create shareholder value, and Kalliopi, who's our Director of CSR, talking about our corporate social responsibility. We will not be giving any trading update. We're in the middle of Q2, so please refrain from questions on the quarter. I'd encourage you to use the coffee break and the lunch session to network with the Temenos management team, ask questions during that period. We'll also have a Q&A panel at the end for any further questions. With that, I will hand straight over to Max to kick off the session.
Thank you, Adam. Good morning, thank you for coming this morning in this amazing venue, and on such a nice day as well. Listen, I was having coffee with some of you, and I can see the excitement about the announcement we made this morning, the excitement about what we are going to present today. Let's get started. We meet almost every quarter. We speak on a quarterly basis. I think it's very important that once a year, we step back from the quarters, or specifically the year, we look at Temenos on a broader basis, and we look at the trends, we look at what we've achieved and where we are going, which is exactly what we want to do today. If we look at what we've achieved in the past, the trend is extremely clear.
We've been growing sustainably, predictably at more than 20% year-over-year. How have we done that? Why have we been able to deliver that growth? First of all, we operate in a huge market. It's a $57 billion market, and it is growing as well. Still today, banks, they still build by far most of the software still. It's still 80% of that $57 billion is done in-house. A massive opportunity and a growing one. We are already the leader in that market. Already, we are the vendor of choice with credibility, with references, with scale that allow us to invest more than anyone else. Already we are there. We benefit from six drivers of growth, and we'll discuss those in much more details. So far, we've not yet benefited from all of them.
We focus more on one of them. We see why now we've got all the company aligned to deliver on those six drivers of growth. It's not anymore about Temenos only. It's a community. It's ecosystems of partners. We've got 6,000 trained consultant on our software. It's about 3,000 customers. I know some of you came to our TCF, which is our yearly customer event. We had 2,000 people in that room that wants to be part of that community where we share to get benefits of being part of that club. Obviously, over the years, we've very nicely complemented and accelerate our growth through bolt-on acquisitions. Now, there is one message, and the way we've structured the day is to give you the comfort that what we've achieved in the past is sustainable for the long term. We'll discuss why this is the case.
That Temenos has everything to continue and deliver long-term, sustainable license growth at more than 15%. That's super exciting. Who can say that they've got such a future? We'll discuss each of the elements why this is the case. Let me start, if that's okay with you, with looking in more detail at the market where we operate. The market, which is obviously our opportunity. As I said, a very large market, $57 billion and growing. Growing at a 5% compound growth per year. Most of it spend is done in-house because historically, in the '60s and '70s, banks have built their own software. The majority of the spending that is done in-house does not go to innovate, does not go to create new products. It goes to maintain the legacy software that have been built in the '60s and '70s.
They understand that there's an urgency to change. There is an urgency to transform, to be able to adapt in a digital environment. Clearly you can see that the growth goes to third-party software, package software, upgradable software, where you can continuously bring innovation to the customer. Our addressable market right now is at 20%. This $12 billion growing at 8% on average. Clearly, as we've seen, we've grown much faster than that, at more than 20%. We've been gaining market share. Remember, this is a winner-take-it-all market. At the end, you will have one winner out of there, and Temenos is clearly on that way. That's very exciting. A very large market, growing. We've been gaining market share and will continue to grow faster than the competition. There's an urgency to change that has never been greater.
It is recognized by everyone, by the banks themselves, by industry analyst experts. Never before they had so many multiple structural drivers for the bank to change. It's much tougher for the banks today. In the past, banks used to enjoy more than 10% return on equity. That's not the case anymore. Clearly, after the financial crisis in 2008, the returns have dramatically reduced. They need to do something. They cannot operate like that. When we talk to CEO of banks, that's one of the main concern. How do they bring back profitability? Regulation over the years has massively increased. Even some countries where regulation is less, they are still looking at adapting the standards from a governance point of view. Look at open banking, what it does to banks. Clearly, regulation has been clearly a big driver. Customer has changed.
Customer expect the Amazon-like experience from the banks. Why can you not get that from your bank? You will see from Leumi later on how banking can be cool, and you'll see what they've done, which is very exciting. The customer is expecting a different experiences. How can you offer that experiences if you still operate on a siloed basis? How can you have a seamless end-to-end experience? You've got new competitors, new entrant in the market. You get new banks, new digital banks, like we discussed what Pepper did with Leumi. How they are challenging the incumbent vendors because of technology. Technology today allows bank to go up within weeks on the cloud with a new platform. Very nimble, very innovative. Never before we had so many multiple structural drivers for the banks to change, to innovate.
Clearly, they understand and said that there is a need to transform. There's a need to innovate, to be more agile. However, they now cannot do that with the legacy systems. Clearly hindered by the legacy systems that don't allow them to operate. Remember, those legacy system built pre the internet age in computer language that is not teached anymore, with hardware which extremely expensive, with thousands of people that are maintaining that software. The risk related to that, the single point of failure in every of those silos is huge. Very poor customer experiences by operating on a siloed basis that need to change. We are in a time of innovation, of speed to innovation. We need to continuously innovate. How can you do that with a legacy system? You cannot. Speed to market, which is key, cannot be delivered.
You'll hear as well from our customer. Why you cannot open an account within seconds of minutes? Why does it take weeks, months to launch new products? It's because of the infrastructure, the legacy infrastructure. Obviously, you cannot benefit from all that data. You cannot benefit from the data from the customer experiences, and basically through AI, you cannot bring new product to market. Clearly, banks are hindered by their legacy systems. Let's look at how we position ourself in the future, and today, on what are our ambitions are for that market. First, Temenos is uniquely positioned. Uniquely positioned to transform that market. We only do that. For the last 25 years, that's the only thing that we've been doing, selling to banks, selling software to banks. It's a partnership. We are only together. Their success is our success.
We've got 3,000 customers in 150 countries. What is unique about Temenos is both we lead from a banking functionality, which is packaged, which is localized with all what you need to run a bank in your country, from a tax, from a language point of view, from processes, which obviously de-risk the implementation of launching a project, but as well reduce the time to do that. We differentiate on having extreme package, upgradable software, localized for specific countries. Then we've got advanced technology. Technology which is native, cloud native, agnostic, open. We don't want to force our customers into a single stack. We give choices. In an environment where technology moves so fast, you need to be open. You need to give choices to the banks for them to decide which technology they want to go for.
This is where we are unique, and nobody has this in the market, both the packaging and the advanced technology. All of that is because we have a relentless focus on innovation. We are a product company. That's what we do day in, day out. That's what we think. We spend 20% of our sales on the product every year. That's more than anyone, more than our customers. I said we have this ecosystem already in place, with 6,000 partners trained on our software. We even have now a platform which we call TLC, which allows banks to train. We industrialized our training for our partners to give a scale. This is what is unique about Temenos. Only Temenos, because of those attributes, can dramatically reduce the cost of transformation and bring agility and innovation to our customers. Only Temenos can do that.
We are already the vendor of choice. Already, if you like it, here it's looking at the core banking specifically, over the last five years, we outsell our competitors by an average of five times over that period of time. Five times. If you look at our closest competitor, more than twice, we sell more than twice as them. We've said it many times, software is a winner take it all, and we've seen it in other industries because at some stage, you've got so much more credibility, more scale, more references. You can invest much more in the product, that the number 2 and the number 3 cannot cope anymore. That's why there is one vendor of choice at the end. That leadership is accelerating. Look at how we competed against our closest competitor in 2002 and 2018. An acceleration of that leadership.
Now you've all heard of our new product that we launched, Temenos Infinity, Temenos T24 Transact, which are game-changing product, and those product will even accelerate our leadership in the future. It's always great as well to be recognized by independent third-party experts. You can see here IBS, which issue a league table, and we've announced this morning that once again, we are at the top of that league. We've been the best-selling core banking for the last 14 years. But we now start as well to make inroads in our different products on digital, on payments as well we've been number 1 vendor. Forrester as well, another research. We've been named again for the last 12 years consecutively the best vendor for new name and for new and existing names.
Very exciting to be also recognized by the independent industry experts. Now, we benefit from six drivers of growth. Let's be frank, up to now, we've really only sold the majority of what we sell continues to be T24 Transact. That's the majority of what we do today. A large market, a $5 billion market growing at 7%. But now we've got six drivers. We've never had so many products to sell, and that's super exciting. Look at Infinity. Through the acquisition of Avoka that we did at the end of last year, we've got now end-to-end digital front office platform. The front office is as big as a back office and growing faster at 8%. This is totally independent. You can sell Infinity with banks using a different core at the back, all of that integrated through APIs.
Wealth, payment, fund, SaaS, never before we had such an opportunity. What you are going to hear today, and you are going to hear it from our product leaders as well, from our services organization, how we are structured internally end-to-end around those six drivers of growth to ensure we capture the opportunity for each of those products. Clearly, core or T24 Transact is where we've had our leadership so far, the largest part of our leadership. We've got today a 16% market share. This is on a global basis. Clearly, internationally, our market share will be higher than that, in the range of 20%-25%. In the U.S., we'll be lower, probably around the 5%. A global market share of 16%. Remember, this is a growing market. Remember, we've been growing market share. We've been growing faster than the competition.
We've got today more than 700 customers on core, 750 customers on core. We've got credibility. Clearly, our goal for the future, for the long term, is at least to double that leadership and that market share in core. At the same time, if you look at all the other products, we capture combined a 5% market share. Obviously, some of them have a higher market share. This is an average. Like funds, we've made very good inroads, and Oded will say more about that. Others, like payment, we've a smaller market share, but growing as well. There is no reason why we cannot get those other products to the same leadership position as we enjoy on the core side. No reason.
In fact, we did all the hard work on the core when we started selling to the smaller banks, getting the credibility, getting the references, getting the partners. All of that is done. All of that, our other product will benefit from it. For the future, for the long term, we want to take the other product to the same leadership as where we are today on core. To at least triple our penetration in these other products. Tier 1 and Tier 2 represent around two-third of the spending. Today, we've penetrated around a third of those Tier 1, Tier 2 banks. We do business with around a third of the Tier 1, Tier 2 banks globally. Clearly, in Europe, which is where we started, we have a larger penetration, which as you can see, is growing as well.
In other regions, like in the Americas or in Asia, we have a smaller one, but as well, growing. As you know, the last five years, we gain most of the large deals that came to market, the majority of the large deals that came to market. We want to continue to gain those deals. There is no reason why we are not going to continue to do that, because we've got the credibility, the references. Obviously, we want to extend as what we do with those large banks. It is about continuously renovating a bank. It is about a partnership. I know Ilan from Leumi will discuss it later on. It's a partnership for the long term. Those are the discussion we have with the customers, is how do we transform continuously the bank?
Obviously, we love to sign new Tier 1 banks because it gives us an entry point, then we can grow that relationship. Today, we capture less than 5% of the wallet share of those large banks. In the future, we want to at least double that. You can see on the right-hand side that that spending has been growing by at least 30% year-over-year on a CAGR basis. Let's look at the future now. Let's look at our strategic initiatives and how those will support, ultimately, our end goal of growing, sustainably, our license by at least 15%. Those initiatives to drive growth, obviously, are centered around continued investment and enhancing of our winning solution, our products, to accelerate and also to open up new markets. It is about geographic expansions in strategic markets, and we discuss, obviously, the U.S. specifically.
It is about investing in sales, in specialized sales, in cloud and SaaS, talent, people. It is about nurturing that partner ecosystem to support our growth, to give us scale. Obviously, it is to continue to acquire companies that can accelerate our growth. Obviously, we continue to do that by operating on a socially and responsible way, which is the only way to sustain growth for the future. If we look at our products and enhance what we have done, obviously, you have all seen, and we have discussed quite a bit, our new product, cloud-native, cloud-agnostic. The benefit of that is huge. The ability to elastically scale up and down and really to use on-demand for what you need, to have the resilience that cloud offers. Multi-cloud, active-active. Nobody offers that. Nobody can offer that. You can run it on Azure. You can run it on AWS.
If one drops, it continues without any interaction on the other one. Cloud-agnostic, we offer choice to our customers. The choice of the technology, because technology moves so fast, innovation moves so fast, you cannot lock them in a specific stack. They need to have the choice. They need to have the ability to choose from a cost point of view, from a performance point of view. We operate in an environment where speed of innovation is so important, and we will continue on that way. How to launch product faster, how to build, test in the morning and you deploy in the afternoon, how to continuously innovate. It is obviously about being APIs first. We have more than 400 APIs today. We distribute those APIs with our software. You can even find them in our Temenos Developer Portal.
With those APIs, you can rapidly integrate and innovate at a lower risk and cost. Obviously, it is about opening new markets. We have announced earlier this year a strategic collaboration with Bloomberg, and Oded will give us an update on this, how to open a new market, in this case, on the buy side, a $5 billion technology market. Hopefully, Oded, our first deal is in Q2. That is on this product side. Clearly expanding the market, expanding our strategic market. Clearly the U.S., which represents between 35% and 40% of the spending, is a key market for us. I am very pleased that we have made major progress over the years. Just in 2018, we reached $100 million revenues in the U.S. We have got scale. 430 employees. 16% of our license in 2018 came from the U.S. 7 offices.
Clearly, the acquisition of Avoka is giving even more momentum to our U.S. strategy. We've had major success with companies like Commerce Bank, PayPal, new entrants like Varo Bank, Grasshopper. Very pleased. Our strategies for the U.S. is extremely clear. We continue to focus at the top end of the market with all our products. Those are the institutions with more than $10 billion. It's around 120 of them. We've seen strong progress. Just to give you an example, we signed a very strategic account in Q4 of last year for Temenos Infinity. They get the benefit of our Temenos Infinity, and the discussion is now, why don't we get the full benefit of your platform? Because we are still using homegrown legacy software at the back.
Now we are starting to have the discussion, why don't we change the back to get the full benefit on the Temenos Infinity side? They scale now in the U.S. With Temenos Infinity or with now the acquisition of Avoka, gave us this end-to-end digital front office platform. We can also address the mid-market, so the $3 billion to around $10 billion asset under management. There you've got around a bit more than 1,000 institutions in that market. Already, Avoka has around 50 customers in that market. Also very exciting to be able to further develop that mid-market. Obviously, we'll continue, as we've done with Varo Bank, with Grasshopper, to continue to capture the new entrants, the neobanks of that market. It is about investing in sales. We've been investing in sales for the last three years at 30% per year.
It's also about investing for those initiatives, those six drivers of growth. That's where we invest, in specialization. You can see here how we track our investment in sales. Clearly, you can see at the top that Temenos Infinity, because of the acquisition of Avoka, where we got a lot of skilled from that team, we are almost there on the Temenos Infinity side. There is still a little bit on Transact, but we are quite well ahead. Wealth and Payment is probably where we need to invest more. I think we are probably two-thirds of the way on the specialization, and we'll be there by the end of 2020. Continuous investment in sales and pre-sales, obviously. Being the leader in the market, a winner wins winners, that's why we've been able to attract talent at Temenos.
At the same time, we've built what we call our sales academy, so that internally, we are able to train, mentor new talent to deliver on that growth. SaaS and cloud, I mean, that's super exciting what technology allows you to do. Look at how this has grown over the years. We were the first in 2011 to talk about cloud first. We've got 33 core clients on our cloud offering, 400 clients in total. It's an organization within Temenos, and Andrew will discuss it later on, with 120 employees just focusing on that. It is growing extremely fast. It grew by a multiple of six times the total contract value on the LTM. I know that we've not been very transparent with you so far on our different metrics on SaaS and cloud.
Takis later on is going to give you more information on that side so that you can better model the opportunity that we are addressing on our cloud and SaaS business. It is about our partner ecosystem, which is growing to support us and to support our growth. You know that in 2018, every single working day, a bank was going live on our software. Every day. We had 233 go live in 2018. Almost 1,500 go live the last eight years. That we've achieved because of our partners. We couldn't do it without them. They are very excited because they see, they understand the growth which is in front of us. We've brought to them a training platform, which is basically that has industrialized the training for them, which we call TLC, Temenos Learning Community.
Since then, we've seen a huge growth of people going and getting trained. Today, 6,000 of them are skilled on our software. As we've done for the past, we'll continue to use technically M&A to complement our growth. It is about how can we capture a bigger piece of that $57 billion market, which a huge market in banking. How can we get more from that? If we find a company that can get us there faster, definitely we've got all the means to be able to do those acquisitions. M&A will be about accelerating growth in key geographies, as we've said, as we've done very successfully over the years. Clearly, the U.S. has been one way. Australia, remember when we bought Rubik, and since we bought Rubik two years ago, Australia has become a very material market for us in Asia Pacific.
It is about, as well, buying some complementary products, like what we've done with Avoka, which very nicely complements our digital front office platform. Now we've got so much more momentum with Infinity. Finally, about increased scale, even though today we do have the scale, but sometimes we bought some competitors and then moved them on our platform. Our ambitions are on how we are going to deliver sustainable and long-term growth. It's about our huge market, a growing market, remember. It is about already being recognized and leading that market and having all the benefit of being the leader, investing more in the product, credibility, a community with our customers, with our partners. We benefit from six drivers of growth. Never before we had so many products. Never before we had an organization aligned end-to-end around those six drivers of growth.
It's our partners that give us scale, that give us the ability to grow faster. It is about accelerating growth, organic growth, through bolt-on acquisitions. I've been with Temenos for 17 years. Never before it was so exciting. It is not because I'm the new CEO of Temenos. Maybe a little bit. It's because for the last 25 years, we've built that credibility, we've built those references, we've built that partner ecosystem, and we've got scale. We'll be $1 billion this year of revenues. We've seen it again and again in other industries. When you get to $1 billion, and there is nothing magic about $1 billion, the fact that you get to $1 billion means that you've got that credibility, you've got those references, you've got that partner ecosystem. What we've seen in other software industries, when you get there, growth accelerates.
When you get there, you become the category killer in that specific market. This is what we want to do. We want to be the category killer in banking. That's what we want to do. We are extremely well-placed. This is why it's very exciting times at Temenos right now. Thank you very much. Mark now is going to walk us through our different products and how those products are so aligned on our six drivers of growth. Thank you, Mark. Thank you.
Good morning, everyone. My name's Mark Winterburn. I run the product group at Temenos. Adam and the team are now very worried because they've allowed product onto the stage. We like to talk about product a lot, he's very worried that we'll be late and overrun. I'll try not to let him down. Just a few minutes from me just to set some context. As you've heard Max, it is a very exciting time to be in the company. Many things have aligned. Lots of good work in previous years has come together with work we've done more recently. There is, across the company, a relentless focus on development, on incremental change and transformational change. A little bit later, because I know I've spoken to some of you guys before, you're interested in how we manage the investments around those things.
I'm going to talk to that in a little bit. We do spend approximately 20% of revenues in the development program. We're in a very virtuous circle at the moment. We win deals, we hire more talent. We hire more talent, we win more deals. We innovate the software further. We can hire horizontal experts from across the industry. We take on young talent on a regular basis. It genuinely is a virtuous circle, and that allows us to do more because we've got a single code base. Max talked about the six drivers for growth. You can independently employ those, but they're built for the same design principles, the same commitment to open and to customer choice. Each person-day invested in that adds to that growing category killer, as Max referred to it.
That relentless focus, that relentless commitment, brings greater and greater benefits as we go forward. I guess you could see it in a couple of different ways, in the sense that the 25 years investment in feature function, that allows us to incrementally add and change that as we go. That is a massive barrier to our competition. You just cannot recreate the depth and the breadth that we have in the feature function. In a previous life, I've had a go. Trust me, it's incredibly difficult. That incremental, every day, we want to add a bit more breadth or a bit more depth to the various categories we sell software in. We can do that because we've got the base. It's much easier to add to and to change than build from scratch. Then the revolutionary approach to technology.
Much of what we've done recently with the creation of Infinity, the cloud-first, cloud-agnostic piece, has been us building on investments we've made in technology in the prior 10 years. Trust me, we've got a world-class technology group. I have no doubt about that. People can run their software on the cloud, but can they leverage properly, fully, that software on the cloud? They can be cloud compatible, but are they truly cloud first? Does the software scale up and down immediately by chunk rather than just running a very large piece of software? There's some revolutionary technology that we deployed, and we continue to deploy that very regularly. The cloud feels natural to us, the way we build our own software. I'm going to talk about continuous deployment a bit later, but that's how we build software.
We spin up instances in the cloud. We run hundreds of thousands of tests every night, that software is good to go the next day. We do it every day. We'll soon be at a state where we can run it multiple times in a day. When we talk about continuous deployment, it's merely the deployment of what we do in-house, taking that technology and allowing our clients to deploy it. 180,000 person days in 2018. We'll be more than 200,000 days this year because we have a commitment to grow the R&D group. We'll put more days in this year than we did last, and we did more last year than we did the year before. There is so much for us to build out and build upon. That is something that feels very healthy to me.
This ongoing commitment is just a daily event. We could be talking about trade finance, we could be talking about corporate lending, we could be talking about funds administration. It doesn't really matter what it is. We are building something out, either more depth or more breadth every day. That's our mindset. I wanted to try and capture the six drivers kind of on one page. Infinity, the digital front office, that can connect to any in-house or legacy core. They don't need to use T24 Transact. Clearly, you get all sorts of benefits if you do, but that's why we're so excited about Infinity.
It allows banks to take our commitment to open, to transformational, leave their existing back office where it is, leverage us, put differentiation, personalization into the front, as and when they're ready, migrate their back office via a number of different methods to do that, which Alexa will talk about in a bit more detail later. It does allow us. Max mentioned a sale in Q4 last year. That was a platform play. The bank saw that it could take that digital transformation step, and later, in its own time, take advantages more easily from the full Temenos stack. That's why we're so excited about the Infinity, the digital front office, which Darryl will come up and talk about. Clearly, we all know T24 Transact, the flagship leading core banking solution, massively scalable, deployable quickly, and at very low cost.
Banks that want to concentrate on huge volume, on manufacturing, ready-made platform with huge depth and breadth of functionality. They're the two, if you will, core pieces. WealthSuite. Those of you who have been big in WealthSuite for a long time, that allows through the front office to differentiate and through the Wealth back office, huge efficiencies for the various relationship managers, et cetera. World-class offering there. Payments, we built using the same architecture and design principles as T24, as it was at the time. Again, highly scalable, simple to implement, very flexible, real-time instant payments. Can be deployed as a standalone payment solution against the normal incumbents, if you will, or embedded inside Transact. Seeing a lot of growth in that, which we kind of expected because we knew the quality of what we were building some years ago.
Funds admin, any product type, any asset type, across a highly scalable single platform. Again, as Max mentioned, a serious solution there. Finally, all of this available on premise through SaaS. Platform completely agnostic. If you want to use a particular provider for cloud, we're there. As Max said, the ability to go active-active across different cloud providers. This is the big picture, but this is where the investment goes, this ability to offer our customers choice. Banks, however small, however large, offer them the choice of the software they deploy on and the method by which they deploy. Something I've spoken to a number of you about, and you'll be familiar with, but just to recap, the key to this is to have the core solution, what we would call level 1.
That's the core of the system that's applicable to any of our clients, wrapped around a Model Bank with a set of Model Bank procedures, which I think is now around 1,000 processes. That's how the banks take the software in their initial deployment. What we would call level 2, this is take the bank, but now we're in a specific zone location, a Country Model, if you will, to allow the software to work as well in France or Germany or whatever. That's the level 2. Finally, the bank-specific pieces that usually are done by configuration or parameterization that allow the bank to make the software its own, if you will, in terms of the way it personalizes and differentiates to its clients.
That ability for us in a productized, repeatable, upgradable, packaged approach, which allows all the investment to go into reusable products regardless of whether it's L1 or L2, is what's at the heart of this. It allows us to be live in over 100 countries, and yet not have that enormous complexity of trying to maintain that. Very proud of that. That's something that's been in the system a long time. We've just productized that and make it look like L1 throughout that stack. Very pleased with that. Makes it very easy for our customers to deploy multi-country solutions. Just a little bit about the investment. Clearly with the interaction with the market, we get input from literally hundreds of sources. Broadly, our customers will talk to us about, do we offer this? Could we offer this? Et cetera.
Prospects, when we're talking about the possibility for them to use our software, those kinds of things. Partners, another good source. Obviously our staff. Our staff are interacting in the market all the time, coming back with ideas for ways to innovate the products. We have the rational tool set, which just allows us to capture those possible investments in the products, to document those, and then they go through a very rigorous process where we have a whole bunch of governance, be that sort of daily, weekly, monthly, culminates in the product board. The product manager for that business thinks it's a good idea. They'll write a little vision and scope, as we call it. If it gets through that, then there'll be a proper investment.
This is gone through on a formal monthly basis with the C-level of the company reviewing, have we done what we said we would? Also, what are the new investment opportunities we've identified? Does the company think these are the right things for us to invest in? That 180,000 days to 200,000 days this year, that is through this process. Right? Taking inputs from wherever, putting it through a funnel, a proper documented, productized process, and then the output, as I showed you in the previous diagram, could be L1, could be L2, could be something for a specific customer, or it doesn't make the cut. That process is happening around the world through the rational tool set on a daily basis. That's how we make the investment decisions. That's how we decide where to place our bets, as it were.
I said I'd talk a little bit about the continuous deployment. Having built all this great product, how do banks make choices about the way they want to deploy that? This continuous deployment, as I say, comes from our own processes in our labs. We have a process, a unified Temenos process, UTP, and that basically takes our code, puts it through a development. The development process means you check the code every day, and then overnight it is integrated and tested and is ready to deploy the next day. As I say, we're at a process now where that's about four hours. Should we want to, we can start to do this more than once a day. That's how we've been building code for a while.
Some years back, it's obvious that if you were going to deploy in cloud, the way you built code had to be more granular. You had to make smaller chunks, more discrete, and more packaged. We had to build a system like this. As we work more with banks, this is how banks want to deploy. Be that their own developers or code through UTP from us or from the marketplace or partners. This gives us the ability to build in the morning and consume in the afternoon. I don't know many banks yet that want to do that, but clearly as we go forward, this idea that six months or nine months is acceptable is clearly not acceptable. With the levels of investment and the need for change, the need for speed, this kind of model underpins pretty much any implementation methodology going forward.
We've taken what we do, we've productized that. It's using cloud throughout. It's virtual machines spinning up, being used and then taken down for the testing. We see this as happening now. Some banks are on this journey now. Others are looking closely at this as, when will they use this? How will they use this? This is kind of DevOps in the industry jargon brought to life and something we're very comfortable with, something we see as quite a natural extension to the way we take our code here ready to go. Bank want to write through their deployment processes to a point of maybe UAT, where they're ready to then take over and put it live. This can be daily change, or this can be batched into a week or a month.
A number of banks we work with now want us to use this process for the codes there, then they're testing it. We have a formal walkthrough every couple of weeks, that kind of process. Max talks about the six drivers. We've got somebody, usually a product guy or Oded business leader, coming up to talk about them. Hopefully, you've got a bit of a flavor from previous TCF or whatever. Now, we're going to go through each of these, first up, it's Alex Duret.
Thank you, Mark. Okay. Hi. The core banking, it's our first driver of growth with Temenos and a historical one. What's a core banking system? In just a few words, this is the place where each and every financial institution is going to process their transactions and manage their positions. It's the heart of the bank in a way. This is a growing market. We estimate it to $5 billion, it keeps growing. It's been growing for years, it keeps growing. Our response to that is Temenos T24 Transact. The value proposition is very key nowadays. We're talking about digital transformation. It's to do it, this transformation, faster and cheaper via the core banking system, through innovation through package and integrated functionality. It's hard. You can't imagine how hard it is for our clients to transform, to go along this digital transformation path.
We are here to help, we have all the credibility with this core banking software that we keep enhancing. In the next few slides, I'm not going to talk a lot about functionality, about retail or corporate banking, but more about the technology, because this is the theme of the current years in the short term, also probably in the longer term. If you're following Temenos, you might be following some of our competitors as well, they've been here for quite a long time. You have the global players, you have the regional players, then quite recently, we've seen a flurry of new competitors, startup companies entering the core banking market.
It's very exciting for us because it gives us a boost to do even better than we used to do in the past, because the old way of competing with Infosys and Oracle, okay, we're quite good at that, but this new competition gives us an incentive to innovate even more. If we compare against all of these players, some of them are global players, we are. Some of them are not. The startups, by definition, cannot be. Very few are cloud native. If you are a startup, you start with the right technology from the beginning. If you're a more established vendor, it's a lot of work to go to the new technology. We spent a lot of time re-engineering T24 Transact to be cloud native. We're bringing the best of both worlds into one system that's quite unique today on the market.
Another differentiator is we're addressing all the market segments. We've been very good at handling retail banks, corporates, wealth managers, treasury, Islamic, inclusive banking. We're probably the only company who can do that. We keep all the options open, and we want to keep growing wherever there is growth in the market, and that's quite unique. We've put a lot of effort into integrating our system. These six drivers you will see us talking about today, we put a lot of money and technology in making sure that they talk to each other. That's also a big difference to some of the competition who come with very different systems, then they don't talk to each other. Then it's a huge cost to integrate all of that. We make sure upfront that it's all pre-integrated.
Finally, maybe I think a really key differentiator, we focus a lot on the long-term upgradeability of our system. We're selling a product. We're not selling services that people. We're not selling consultants, basically. We're selling a product, something that banks can keep upgrading year after year after year. If you buy T24 Transact today, you know that in 20 years, you'll be upgrading to release today plus 20, and it's going to work. What's the market saying about all of this? The key focus nowadays is digital banking. This is where the main focus is in many banks, tier 1s down to tier 4, they're all focusing a lot about digital banking. Still the second priority, I was going to say even surprisingly, people don't forget that for this thing to work at the front-you need a proper digital real-time core banking.
There is still a lot of investment plans by all of our prospects and clients into the core banking. If you go down to the bottom, the funniest thing here is out of cloud services. Nowadays, it means that financial institutions still see this as a maybe fifth priority, while we think it's the foundation for everything else. We've talked about cloud a lot with Max, with Mark this morning. This is the foundation to transform all the banks from a traditional institution to digital companies. I'll be talking about that. The things that Mark has been talking about, the path we've been through in terms of transforming our software to be cloud native, it's what banks need to follow now. We've been through this journey, we now have all the tools to help them go in that direction.
What does it mean to be cloud native? In just a very few points. It means, first of all, a bank, it's not an IT company. A bank is not supposed to be running hundreds and thousands of machines and complex hardware and so on premise. You have people who do that for you go to Amazon, you go to Google, you go to Microsoft or even Alibaba, if you're in Asia. That's what these guys do, and they do it much faster and cheaper and more securely than you do. Stop being IT companies. Focus on banking. It's a mindset for a lot of banks. It means changing the hardware. It means also changing the way your organization is structured. Not so much on maintenance and infrastructure, but more on creation, on innovation.
It's about changing the way you design your applications, too. That's for us as Temenos, it's been where we spend the most time, and we keep spending time making sure that our software is completely re-engineered to work natively in the cloud. I'm not going to bore you with technical things like containers, microservices, or distributed database, but that's how it works. You need your software to be nimble, to be more componentized so that it's easily interchangeable and it runs faster. This is the secret behind, in other verticals like the Amazons or the Netflix of this world, they have a super cool user interactions, but in the background, you have also super cool core technology that runs along the same principles. That's what we want to bring to our clients, to the banks.
A consequence of that, once you have this technology in place, you can really become an innovation company. DevOps, Mark explained briefly the notion of continuous deployment, continuous integration. It means that nowadays, you can very easily launch new products on the market. With T24 Transact, it's always been very easy to create new products, but what really happens in the reality, you launch this, you create the stuff in T24. It takes a few hours, let's say a few days, if it's a bit more complex. Then what? You wait 6 months until it goes into production because it's banking, because you need to test and retest and re-retest to make sure that it works. You're wasting all this time. You have this brand cool idea.
You have the software that allows you to implement it, still you're wasting months to be able to release it to the market. DevOps, continuous integration, continuous deployment is the way to automate all of that, to automate all these tests. You push a button, you get your environment. If you want to do, you push another button, it goes into this whole testing cycle. It's all automated, hundreds of thousands of tests, then you're ready to ship it to your production environment. That's how the other industries are working. That's how the Amazons and the Netflix of this world work. That's what we are now. We've been through it ourselves, that's where we are now ready to offer to our banks as a service. Finally, we talk a lot about APIs. Yes.
We're going to implement this core banking within another environment which has its own complexity, other systems that the banks are going to keep. We need to make sure that we can integrate with all these systems. We've changed the mentality from point-to-point interface to actually APIs, open APIs. We have a Temenos Developer Portal where we publish all these APIs using standard technology. Again, it's not technology for the sake of technology. It's to make sure that this is going to be faster and cheaper for the banks. A few numbers, because we like numbers. The business value, some examples. The tip of the iceberg is, first of all, to reduce infrastructure costs, okay, by three times, six times, 10 times, I don't know. If you move all your IT infrastructure to the cloud, this is the kind of savings you can achieve.
Further down the road, once you become an innovation company, you can also increase, as a bank, you can easily increase your revenue by 15%-20% simply because you can innovate faster. You're launching new ideas faster, therefore you grow faster, therefore, the next idea will come even faster, and so on and so forth. In terms of orders of magnitude, let's say we've been running some tests when moving to a microservice, creating new microservices, and some of these things, they work 100 times faster than they used to. It's really the technology enabler of banking. This is the short term, medium term. The next few years, we're driving this change across the banking industry. In the long term, the fundamentals don't change. We have the breadth and depth. It's still there across retail, corporate, our Country Model Banks. That's not changing.
We keep investing. We want to keep the lead in the market. We innovate a lot. We're talking about that. One thing not to forget is choice. We have hundreds and thousands of clients, if we consider all the products. We still want to give them choice. We're not going to scare anybody saying, "You need to move to the cloud now." You can remain on-premise. We give you an upgrade path. You want to go private cloud, you can go on a private cloud. You want to go public cloud, you can go public cloud. We keep all the options open because we want to capture the entire market, not just a few technologists out there. Finally, we're stable. There's new competition coming our way.
They have yet to prove what they can do, whereas we know we've been through a number of financial crisis, market changes, and so on. We know we have the right structure and the right products to achieve that. I've been talking about the heart of banking, which is the core banking. Let's talk now about one of the brains of it, which is the front office with Darryl.
Thank you, Alex. Thank you so much. Good morning, everybody. How do I follow that? I follow by telling you that a heart of a bank is core banking, but how a bank sells its product is through the software that we enable a bank to do that. That's Temenos Infinity. Temenos Infinity allows the bank to sell its product. If a bank can't sell its products, it's not going to survive. Same as if we don't sell our product, it won't survive. Infinity gives them that ability to market their products, to acquire new customers, and also to service those customers in a digital world. That's very important today. It has to be cheap, it has to be digital, and it has to be digital end to end. It's a huge market, as Max said. It's a growing market. It's growing at a fast pace.
The way that we service that through our value proposition is to deliver an omni-channel platform that's enabled by APIs. We don't look constrained. We have to have the ability to talk to fintech partners. We have to have the ability to talk to any core banking engine, including T24 Transact. Infinity differentiates itself by leveraging 25 years of knowledge that we've had in core banking. It's not just about putting a wrapper and hoping that that wrapper has something that understands banking. It's about utilizing the knowledge that we have in banking in Temenos, and making sure that as we allow a bank or enable a bank to sell its customers, that the customer of the bank understands that the bank knows what it's talking about. It's not just that thin layer that sits on top. That's really where we compete.
We're full front to back digital. That's where the sweet spot lies. If a bank can service its customers 24 by seven, 365 digitally end to end, you're not worrying about close of business process. You're not worrying about that. It means that the digital side all the way through to the end is looked after. It crosses all of the banking verticals as well. Wealth management, corporate banking, SMEs, mass affluent. It covers everything in terms of banking. Temenos Infinity has to enable a bank to service any customer that a bank may have. With the acquisition of Avoka that Max spoke about earlier on, it allows us to utilize best of breed acquiring technology. Onboarding a customer, cross-selling to that customer is massively important. You'll be surprised how hard it is to get a journey of a customer right.
From understanding what the customer wants to bringing them into the bank is a very hard thing. If you put a field in the wrong place, the customer will abandon that journey. That's really important. That's important about understanding how you use the software. We all use our bank on a day-to-day basis on our mobiles. We want the bank to be in your pocket. We want the bank to be in the corporate's pocket all of the time. That's really what it is. Infinity is the window and the door to the bank. This is how the bank gets their customers, from marketing to them around products. Marketing isn't putting products on a webpage and saying, "Oh, let's hope the client understands what he wants." It's about doing a needs analysis.
It's about bringing them down, filtering them through a decision tree to understand what product they want for the need that they have at that very moment. Once you have marketed to them, you have to be able to take them through the journey to be able to service that product, get them to buy the product from the bank. That's the key part. That's making sure that it's easy for the client to utilize the software. Once you have them, if you don't do a good job in servicing them, you're going to lose them. You have to do a good job in your omni-channel solution so that you can retain the client and ultimately upsell more product. That's the enablement of a bank. That's the door and the window to the bank for their own customers as well as new customers to the bank.
Of course, supporting all of that, as I said, is the embedded T24 Transact. That's digital end-to-end journey. We can also operate with multiple core banking, other core banking software, different pieces of technology that may exist in a bank. That infrastructure, that ecosystem that a bank has, Temenos Infinity services that. Why do we need to service that? If you look at the way a bank traditionally manages its digital front office, it's something like this. Multiple siloed systems sitting at the back. They try and create a customer experience layer that sort of sits between that, and then they try and expose it via the channel. I've heard of banks telling me that they give their client a separate login to look at their credit card versus looking at their accounts. You can't do that today.
You need that one place where everything goes, but you need to understand the banking that sits underneath it. The ability to look at an abstract some of that function, some of that understanding of banking products is what Temenos Infinity does. It abstracts from that the business logic, so that your product catalog that a bank has, the manufacturing part, is distributed cleverly, intelligently, and across any channel. You don't want a client to walk into a branch today and then go home and look on his internet and can't continue that journey. It has to be omni-channel, but you have to understand across all of that channel the banking business that goes with that. This really is the big picture. This is the big picture of Temenos Infinity. What does this picture mean?
It means at the heart of Temenos Infinity is how we service the customer. That's the CRM capability. It's the ability to take the client and lead him through a decision, a digital decision journey. What am I doing at my life stage right now? Am I buying a car? Am I getting married? Am I having a child? That's a decision that may result in a financial implication, allowing him to choose a product carefully through a marketing catalog that's abstracted from the core banking engines. Using the workflow to do that and understanding what the engagement with that client might mean. Real-time engagement with a client is incredibly important. If I am looking at a piece of software, or if I'm looking at my bank today, and I'm looking at the different loans, there's a reason I'm looking for that loan.
Being able to make that client a customer of one, we do that with analytics. Sitting underneath all of this is data-driven journeys doing it. What's the product I want to market to that client as a result? Don't offer me a personal loan if I put in I want a 25-year loan for a house. You'll be surprised how often a banner will come up on your internet banking that has absolutely no relevance to what you're doing at that time. Infinity takes that away. We allow the client to use the software based on what they're doing at the time, taking them through the sales process, and then, of course, the servicing. The servicing is as important, if not more. Cross-selling to an existing client is a lot cheaper than acquiring a new client for a bank.
Being able to aggregate accounts across different banks, hugely important today. If I can see all my accounts at my bank, regardless of where I bank, and remember, a corporate can have thousands of accounts, it means that I'm more likely to buy product from you. I'm more likely to use that bank to buy product. That's what Temenos Infinity enables. It enables the heart of the bank to breathe, to run, and run as fast as it can to innovate, to change the products that they offer very quickly. A digital solution has to be able to change. It has to be agile for a bank. We do that through configuration, abstracting banking knowledge from the core banking engine, and delivering it to the banks to enable them to sell to their customers.
Surprisingly, when you're using a digital engine or a front office, a lot of what a client does is payments. It's one of the most important parts of a digital front-office solution. Being able to do payments front to back, hugely important. With that, one of the other drivers I'm going to hand over to is Sujatha to talk about payments.
Thank you, [Zach]. Good morning, everyone. As you can see, payments is a big market opportunity with a $2.7 billion tech spend and growing at 10% annually. With Temenos Payments, we offer a centralized payments hub for banks of any size, processing real-time payments from any channel or source. Here's a quick view of our competitive landscape, how we compare or stack up against our competitors, mainly payment specialist vendors. We compare quite favorably. We have a global presence with customers spread across all geographies. Multi-product. We are multi-product. We come pre-integrated with Temenos products, financial crime mitigation, Temenos Analytics, and compliance modules. Universal payment process is our big strength. We can process any type of payment through a single workflow. Hence, we have a single solution processing high-volume retail payments and high-value corporate payments. It delivers big efficiencies and ease of maintenance to our clients.
With our extensive partner ecosystem, we can deliver seamlessly anywhere across the world. Coming to the market drivers. Temenos Payments market is in the midst of a significant disruption, and the pace of disruption has accelerated with multiple drivers. There's been a sharp increase in payment volumes, with non-cash transactions growing at 13% annually. The rise of open banking is resulting in increased competition from the fintechs and the big techs. Banks are driven to expose their services to third parties via open APIs. Instant payments is becoming mainstream, with several countries across the globe adopting this scheme. ISO 20022 is fast emerging as a global standard in financial messaging. Last but not the least, customer expectations have increased many fold.
Payments is the only product that every customer of the bank uses almost every day, and customers expect frictionless payments that are speedy, secure, convenient. Hence, to protect their position in the value chain and to retain their customers, payments transformation has become a priority amongst banks. Banks need a modern payment solution. With Temenos Payments, our holistic and scalable payment solution, we are excellently placed to tap into this big market opportunity. We have a range of proven products covering the entire payments life cycle, from payment initiation through to compliance and analytics. Temenos Payment Order helps in seamless customer journeys across all the channels. Temenos Payments Hub is our universal solution for efficient and high straight-through processing.
With our flexible configuration, we allow banks to change their payment processing rules on the fly, and it delivers very high agility and speed to market in bringing new products to their end customers. The Payments Repair, it's an advanced engine for intelligent repairs, and it further enhances our straight-through processing rates. All these products are designed to work separately as well as together, providing the flexibility to tailor a payment solution specific to our clients' requirements. We also offer the widest range of deployment options to our clients. Temenos Payments can come embedded with T24 Transact and operate like a single solution. It can be deployed standalone with any third-party core banking solution. The standalone mode is a significant game changer for us because you can deploy Temenos Payments without T24 Transact. A bank may not have T24 Transact to deploy Temenos Payments.
We also offer our clients the option of deploying the solution on-premise or on the cloud. Given the strong payment proposition, we are quite well-received by market analysts. We are the best-selling payment solution right now. We won the FinTech Award for Payment Innovation in 2018, and we are also very well-rated in vendor assessments. A big proof point of our strong payment proposition is the client uptake in the last three years. We went live with our first client, ABN AMRO Bank, in 2015. In 2016, we added two more clients. In 2017, we had seven more, and in 2018, we won 17 new clients. Finally, it's been quite heartening for us to see the kind of strong growth and recognition we have received in the market, and we expect this strong growth momentum to continue through 2019, 2020, and beyond. Thank you.
Thank you very much. Thank you very much, everyone. Amazingly, we're about five minutes ahead of time, thanks very much to the product team for that. We'll break for coffee now, if we could ask you to make your way back upstairs, either the lifts or the stairs on either side of the venue to the room we were in for the breakfast and registration, and to be back down here for 11:30 A.M. to start the second half of the product session. Just a quick note for anyone who hasn't found the presentation yet, it is available on our website on the Investor Relations section of the website under the Capital Markets Day tab. Let me know if you're struggling to access that at all, but it's on the website. See you shortly. Thank you. Welcome back, everyone.
I think we'll just push straight on with the second half of the product session. We'll then be having the session on implementation and partners, and then we'll have Ilan from Bank Leumi on stage as well. I think with no further ado, hand straight over to Pierre, who's going to talk you through our wealth offering.
Good morning. Wealth is a quite generic term, the way I think it's easy to define is wealth is really the solutions banks use to service the investment needs of their customers, whether they are retail, mass affluent, or ultra-high-net-worth individuals. The medium-term plan for the front office wealth only is $4.6 billion, with a growth rate of 8%. Our product offering is called Temenos WealthSuite. I think the key value proposition of Temenos WealthSuite is really being able to deliver best-of-breed components in area of portfolio management, CRM, and core banking, and to deliver them as an omnichannel solutions for retail, mass affluent, and ultra-high-net-worth, whether they are, of course, bank users or clients and advisors. It's a quite competitive market, I'm sure you know some of those, almost all of our competitors.
I just would like to highlight two of key elements and two of our key differentiator against those competitors. The first one is our multi-component approach. We're really able to deliver to those people, to our banks, to our customers. If they want to just implement a front office, they can implement a front office. They want a core banking, they can implement a core banking. Of course, they want to have the full solutions, they can have the full solutions. Even when, as an example, if you're looking at implementing a front office, if a bank has a need for just a portfolio performance engine, we are able to deliver that, just a portfolio performance engine. We can really go to quite a lot of details and detailed components, and that's very important. The second important element is multi-segment.
A lot of banks today, I'm sure, want to basically leverage on some economies of scale. They want to run on one platform, their retail business, their corporate business, and their private banking business, their wealth business. I think we're unique. There's no other solutions that can really deliver all of this on a single platform. That's really two important differentiators. Those differentiators together with continuous investment we do in our products, are delivering us growth opportunities in two different streams, that we can segregate in two different streams. The first one is in the traditional, I would say, private banking, wealth management business we have. The second is more on the mass affluent and the retail market. We like to come and spend a bit of time on this offer for the mass affluent and retail market.
If you look at some numbers, I think from the high end of the retail people, so the people that have probably around the $5,000 up to really the mass affluent and the low end of the high-net-worth, so the people that are a bit below the $1 million. That represents 53% of the world's wealth. That's a huge amount of money. Quite often, a big part of this segment was mentioned as being the lost segment, or people are also talking about unserved people. In the past, it was too expensive for retail banks to serve those people, and for private banks, the revenue were not interesting enough. Those people were left behind. Of course, there's two important elements that have changed that. Technology is one and the customer behavior is another one. Banks need to deliver on that segment.
Specifically for that segment, we have launched last year a new module called the Robo-Advisor, quite famous. All of those modules are really tailored and targeting for the mass affluent, the retail people. Customers can act on their own. In a world of digital, they can play, they can work. They don't need to necessarily talk all the time to relationship managers. They can roll all of this on their own. This year, we've launched a second module, quite tied to it, which is goal-based investing. Again, quite important. This market of the mass affluent are the new generations of people want to invest. They're not really interested by receiving a message like, "The funds I'm proposing you does a better performance than my competitor funds." That's not what they're looking for.
What they're looking for is the ability and services that will say, "Well, I'm ready to invest a certain amount of money today. I know I will be able to spare more money in the future, but with all of this, and if I'm following the right strategy, if I'm following the right model, am I able to achieve a goal in maybe 5 or 10 years' time? Will I be able to acquire a holiday home in 10 years' time?" That's what they're looking for and that's the service they're looking for. That's what we deliver with those new modules. You will tell me probably that there's quite a lot of fintechs doing all of those things. We have key differentiators against those fintechs. First of all, those two modules are completely embedded with other solutions. We've talked that briefly in its previous presentation, it's fully API-driven.
All of this is available through APIs. It's completely embedded also with the Temenos T24 Transact side. Not only when you define your goal and when you set them and say, "Well, I want to invest $1,000 today and I want to spare $100 on a monthly basis." Well, behind, everything will be set up automatically. Transfer will be done, standing orders will be automatically put in place. All of those things is embedded. This is delivered with a Monte Carlo simulation engines allowing to really forecast those different revenues. All of those important elements are key and are key differentiators when we offer those to retail banks and to mass affluent people.
Of course, you can also look at the goal-based investing, not only from a mass affluent or retail, it also cope with a more hybrid mode because it's perfectly available also for, of course, more private and ultra high-net-worth individual, where in this case, there's probably a bit more relationship between the relationship managers and these customers to define the goal. We cope with all of those different elements. At the end, of course, when the orders are generated out of the rebalancing and the Robo-Advisor tool, it's full STP. Orders are placed on the market, executions are done, settlements are done, and the portfolios are all updated. All of this is quite key and clearly differentiators against what you find probably with some fintechs today in the market. We've also spent quite a lot of investments in terms of two main development.
The first one is around tax lots. Tax lot is really the ability for relationship managers or portfolio managers to really manage this portfolio and run a lot of different analysis, taking into considerations the tax impact. That's valid for portfolio analysis, but of course, it's also valid when you're dealing with ordering, with rebalancing, taking into account things like harvesting, wash sales, that are quite important in the U.S. Of course, this development was very important for us. We have a clear focus on two countries to start with, the U.S. and Australia. Max has mentioned about the expansions within the U.S. That was a key element for us to expand and to support these expansions within the wealth market in the U.S. as well. Next to those tax lots, we've also done a series of developments around Country Model Banks.
Country Model Banks within wealth really embed and package a series of regulation rules, but also sometimes, I would say, best practice in some countries. We all know that regulations could be understood a bit differently from one bank to another. Typically, what we offer with those Country Model Banks is really pre-packaged rules that banks can tailor-make to their needs or to their understanding of their regulations in order to have a very fast implementation and being able to go quickly with all of those new regulations. Those two elements were quite important in order for us to expand in our traditional market, which is the wealth and the private banking, but into new countries, the U.S. and Australia. The Country Model Bank is also available today supporting a series of important countries like some of them in Asia, others in Europe.
I'm happy to discuss more on those things with you during the break. Now I'm inviting Oded, talking about fund administrations.
Good to see you. Hello, everyone. Oded Weiss. I'm originally from Israel. I joined the Temenos family about four years ago when Temenos bought my company, Multifonds, and I'm going to tell you about the fund administration business. First, we're going to start just a little bit about the market. What is fund administration? It's basically the back office of the asset managers. Most time it's done by third-party administrators, banks. It's a large market, and we have a very unique value proposition across asset classes, across jurisdictions, and that's basically what we do. If you think about The Wall Street Journal, Financial Times, when you see the values of the mutual funds, we calculate those, the net asset values. Let's talk about the landscape. I'm going to try to use this laser. We have SS&C, SimCorp, FIS, they bought SunGard, Enlight Data.
As you can see, we think very highly of them. Then in terms of the things that makes us unique, it's really the global presence, the cross asset. In the past few years, we invested a lot of time about integrated workflow, automation, controls, making the system very straight through. Transition the work of the back office from pushing papers to actually using a tool that is very efficient. We are the only one that offering today integrated ETF, we think is a very important asset class, is growing, and it's part of our solution. Now, when we think about the fund service market, first, there's the asset managers. There's about 40,000 of them globally, almost $80 trillion in assets. These are BlackRock, Allianz, Aberdeen, et cetera. 75% of the back office is outsourced.
Think about $80 trillion asset under management and about $60 trillion asset under administration. What is outsourced? Obviously, the market data, order management, this is not outsourced. This is in-house. The middle office, fund accounting, transfer agency, a large part of it is outsourced. The banks, where you see there, like BNP, Citi, RBC, they provide those services, they charge basis points. It's about $33 billion revenue. Those third-party administrators were our target market. We see them as aggregators. They grow, and they spend a lot of money on technology. Now, in terms of technology market, you have the area of the market data and the order management. This is where the Bloombergs, Charles River, Thomson Reuters play. These are the data providers, the order management providers. Now, if you think about the third-party administrator, they get the trade files after the trade is made.
They don't do the trading. They just get the trade files. In the back office, obviously, there's us and the other competitors that we mentioned. This is how the market looks like. As I said, we've always been focused on the third-party administrators. In terms of our products, we have two products. The first one is the accounting, the second one is the transfer agency. Accounting is net asset value calculation. Transfer agency is shareholder keeping of the records of the actual holders. If you think about the accounting business, we've been around 35 jurisdictions, we cover ETF, and we have 10 sales and pre-sales specialists focused on the accounting business. Transfer agency across 20 jurisdictions globally, four sales and pre-sales specialists. On the third-party administrators, this is where our strength, we have about 35 clients. We serve seven of the top 10.
We do have also a few asset managers, clients in North America, Asia, and Europe. It all goes well in that industry. The third-party administrators provide the service to the asset managers. There are challenges. Regulation, pressure on fees and cost, need for greater risk and transparency, they're all well-known. The one concern in that industry that has been very difficult to tackle is, how do you manage the relationship with your outsourcers? There have been many outages in the past 20 years. The most famous one mentioned here is the Bank of New York, using a SunGard platform, missed calculate the funds for 1,200 funds. For over a week, they could not provide value. You can imagine the market impact of that. The regulators constantly put tremendous pressure on the asset managers. You have to do something about it.
There's the famous Dear CEO letter went to all asset managers saying, "We are concerned." The problem was that you have an administrator, and to use two is quite expensive, as I remember. They charge basis points. They charge quite a lot of money. It's quite complicated. There wasn't really a solution for contingency, for what happened if your administrator cannot provide the data. What happened if your administrator make mistakes? They do. Many times they have to write checks to compensate the asset managers. That's not a great solution. As some of you heard, we signed a very important partnership with Bloomberg earlier this year to basically address this problem, the problem of contingency and oversight for the asset managers. Let's talk about the product. We call it Navigator. First, it's independent of the third-party administrator.
They calculate it using data from different source. It provides real checks and balances versus the numbers they get from the administrator. Secondly, it's very easy to implement. You basically turn it on. If I think about the normal implementation of accounting system, it's always like I used to be in the special forces. You bring the technical people, the functional people, the project manager. It's a big project. Here, it's on the Bloomberg Terminal. It's there, it's available. You want it on Monday, you have it. In every partnership, each one of the partners needs to contribute something, right? What Bloomberg is doing here, they provide the sales. They are selling the product. They have 900 asset managers client that's using the Bloomberg Order Management, AIM. They have 350,000 terminals and about 2,000 generally sales force.
About a third of them will be focusing on creating opportunities for us, they have about 180 sales specialists in the asset management world. You can imagine the impact of that. They will provide customer support, and it is all delivered via the Bloomberg Terminal. We first provide, obviously, the product, the brains, the accounting engine. We train the sales force. This is happening right now, in London and New York. We will provide pre-sales support for very large opportunities, $500 billion and up, and we continue and maintain the product. The target is those 40,000 asset managers. This is quite an exciting opportunity for us, an amazing partnership with Bloomberg.
In terms of the plan ahead, last year, we spent time on the planning and design, negotiated, Max and I had a lot of fun, negotiated the agreements with Bloomberg and get it all done. We are now finished the integration with the Bloomberg network. The sales force training is happening these weeks. Marketing material is done. As of next week, we are starting proof of concept with multiple customers. Second half of the year, full speed to market. The last point that I will leave you with, you see here, it is a screenshot of Bloomberg Terminal, and here in the bottom, it is basically say, "Powered by Temenos." We did not allow it to be a white label. It was very important for us that our product is out there in the market, and we are going to change the industry. Thank you very much.
Andrew, Mr. Cloud, all yours.
Thank you, Oded. Covering now the sixth growth area, which is the cloud and the SaaS offering. My name is Andrew Reeves. What we are talking about here is, you have heard a lot about cloud, all the presentations, around all the investments we have been doing in cloud agnostic, cloud-native technology, et cetera. That all comes together here in the Temenos Cloud and SaaS story that Temenos has. This is where we enable our clients to utilize those capabilities of our products, to utilize that investment, and to go and utilize cloud technology to help them achieve business outcomes, to help them drive their digital strategies, to help them be innovative in their marketplaces, to help them grow their businesses in new territories. Lots and lots of different use cases where cloud really resonates, and we are seeing that growth and success story.
We look at our competitive landscape, it's something that's very rapidly changing. We have our traditional competitors that we'd normally be facing in a traditional premise. We now have other competitors coming through, new start type organizations who are entering the market trying to compete, also banks themselves who are playing fintechs and then offering services out, or fintechs playing the role of a bank. It's a very changing landscape. What's really key, again, as you can see here, is the way in which we're investing and the way in which we're enabling to optimize the use. Through open APIs, through the cloud-native capabilities, et cetera. Our regional presence is a really key differentiator for us.
A lot of these small organizations don't yet have the footprint in all the different countries and territories that Temenos does. We're seeing that as something that's very much valued by our clients and the market. What's really critical, and what's the key differentiator is our history, is the breadth and depth of our experience in delivering cloud. This isn't sort of the peripheral systems. This is, we're the first ISV to put a core banking system up on the public cloud back in 2011. We have over eight years of history in delivering cloud services. What we've seen over that time, Max spoke about that really rapid acceleration recently, is that the market is now starting to move.
The market is now starting to make that shift towards cloud and the use of cloud technology that we've seen in other markets. That's being driven by a number of factors. It's being driven largely by changes in the regulatory landscape. We're seeing more and more regulators issuing guidance out to banks about how they can utilize. It's an outsourcing service at the end of the day, but how they can do that in a safe, secure way using cloud type technology. We're seeing that change on a country-by-country basis, but also, here in Europe, we have the Financial Conduct Authority issuing specific guidance. That was then followed by the European Banking Authority. Luxembourg, FINMA, and Switzerland most recently has issued specific guidance to help banks make this transition. Over in APAC, we're seeing regulators using cloud to help drive competition in their markets.
We're starting to see neobanks entering, Volt, Judo Bank in Australia are great examples of banks who are entering the market to disrupt, to offer new services, to be more innovative, more able to meet the needs of a digital economy than some of the larger banks who are sort of encumbered by more legacy type technology who can't react as quickly. It's a very rapidly changing landscape. What we're also seeing is changes in the way that banks are using the cloud. Very much it was a private cloud, banks still want to have control or more control of their cloud platform. We're starting to see that shift towards public cloud.
We're starting to see banks realize that the billions of investment that the Azure, the Microsoft, the AWS, the Google, the Alibaba are putting into their cloud technology platforms, into the security of those, into the evolution of services that allow you to manage and operate those more effectively is again, a key change in the market. We know that some banks will still go down a private cloud route, and the different ways in which we can support that through our cloud agnostic, cloud-native technology means that they can still optimize their use of private cloud just as much as public cloud. They can still elastically scale our software to meet different changing business needs.
They can still provide an open ecosystem allowing third parties to connect in and utilize services that they want to provide out, that can drive fintechs, that can drive innovation through those types of offerings as well. We're seeing that change happening. We're seeing an ongoing growth, just over 15% growth in public cloud services. We're seeing more companies looking to utilize these types of offerings. If we then look at There's a lot of information on the slide, so I'll talk you through the main sort of key points. If we look at our addressable market, you can sort of segregate it into these four quadrants, by size of bank. I think, probably over two, three years ago, it was the smaller banks that were looking to utilize cloud.
It was the banks who didn't want to have to work out how to run the software themselves. They didn't want large IT departments. They wanted to be able to focus on the business. They were often probably more non-regulated, smaller community type focused banks, et cetera. A great use case for the services we offer, being able to outsource to us, fully managed service. We've engaged with the cloud platform provider. They don't have to go and form that relationship. We're running it as a managed service offering. We're keeping the software updated, maintained, monitoring it, running close of business. It's not a full BPO type model, but we're looking after the software platform on behalf of our clients. We've then started to see larger banks looking to take that, and this is where the Temenos Continuous Deployment type offering really comes into play.
Banks who maybe aren't yet ready to put their production systems on the cloud, but want a more cost-effective way to be able to drive change, to be able to take the new releases of software from Temenos, to bring in their own developments and customizations around their own ecosystems, and do that in a very seamless, rapid way. More multiple deployments, more releases, more frequently, more incremental change into their environments to allow them to react to different market conditions to launch new services. We're seeing larger clients, ABN AMRO being the use case here, who've taken that offering. Again, we're offering choice. They can take that offering from us. They can either create those cloud environments, the test environments, using a cloud provider of their choice within their own subscription, or they can use the Temenos cloud to do that as well.
If they don't want to have to go and engage with the cloud provider directly, they can utilize our relationship to be able to do that. We come across into the more exciting area, the innovative, the innovators, the people really driving changes in our market. I think this is really where we see a lot of movement and a lot of excitement. Again, the smaller organizations, the Judos, the Volts entering the market, focusing on a very particular area, driving change, competing with the larger incumbents. Again, more open banks. Again, utilizing Temenos cloud technology, in this case with a direct relationship with the cloud provider, but utilizing our technology to drive forward with changes in their particular markets. It's a really exciting space.
It's very, very rapidly evolving, I think as you've seen from the growth trajectory we're seeing, it's now something that's very much starting to change in the financial services industry in our space. We've talked about this briefly, just to be clear on the different service offerings we can provide. On the left-hand here, extend and assemble, there's a box that goes around these, is the Temenos Continuous Deployment offering. That ability to take the Temenos software, extend it to meet your specific needs, assemble then together your particular changes, customizations together with the items being delivered by Temenos, and do that in a continuous regression type way. You don't have to have your run on Temenos cloud or even on cloud. Obviously, it optimizes your left to right journey if you do, but it's an offering that's there and available for people to use.
In the deliver space is where we're seeing a lot of changes. We're seeing a shift again from banks looking to have, again, a more customized offering to banks looking for a much more prepackaged solution. Something where they can get that speed to market. There's something there that's geared for their industry, pre-configured with a Model Bank that helps them meet their specific regulatory requirements or interfaces to their specific ecosystem partners, and also provides out-of-the-box functionality about the key products that they can then personalize to their particular market and then launch out into there in a very, very quick succession.
That's where we think the future is going, is towards more of a public cloud and more of a standardized package model, still with that ability to customize that digital front end, that experience that the client wants to have with their customers. Just to wrap up, I think Temenos really has, and I think you've heard it in all of the different presentations today, not just mine, Temenos has a really unique position in the market. We have got 25 years of investment and experience in focusing purely on banking software. Yeah. A lot of these new entrants coming in are almost creating the new legacy. I think that the key differentiator that Temenos has is that constant innovation, that constant R&D, is allowing us to keep on top of the market, is allowing us to adapt to changes in technology and offer those services out.
That breadth of functionality, that ability to be cloud agnostic, cloud native, utilizing the specific capabilities where necessary, but being able to port across between cloud providers as required, or float across multiple cloud providers in that active type scenario, places us in a very, very strong, unique position. Okay. With that concludes the six key growth drivers. I'd now like to hand over to Alexa, our Chief Client Officer. Thank you.
Thank you. Good morning, everyone. I think we've heard a lot this morning, obviously from Max and from all of my colleagues about the market and how we respond to that with our product. Obviously, all this needs to come together into delivering the value to our clients or implementing this at our clients. I'm going to come back to this slide. You've seen it from Max. The idea behind this, though, is not to be bragging or being arrogant, but we have done a lot of those. We have seen a lot, and we paused at some point this year and said, "Okay, it's about time that we wrap this up into a strategy that we think would work rather than adopt standard strategies from the market," which might not take into account how far we've come and what we have done already to deliver projects to our clients.
With over 700 clients in core banking, obviously, we've seen a lot of transformation. I say that to all the CIOs, CEOs we meet. They're lucky if they've done one, if they've done two transformation. By then, they're probably exhausted, they don't want to do another one. We've seen about 700. If you accelerate this with all the go-lives we've seen, we're going to reach somewhere around 1,500 by the end of this year, since 2011. In eight years. That's quite a lot of experience. Different size of banks, small, big, different type of deployments, obviously leveraging now new technology. That's something we can also bring. Consultants and partners helping us implement. We have about 6,000 people in our ecosystem. That ranges from our own consultants, obviously. That's about 1,000 of that number. The rest is our vast ecosystem. They also see transformation.
They also see how customers are using our solutions and bring back experience on how we can do things differently. All of them obviously belong to our wide network of partners, about 30 SI partners, so systems integrator, who bring also their own best practice, and we can combine that together. Really, with that, we felt, okay, we see a lot. We have a lot of people coming to us and inquiring, "How do I transform the bank?" They all have similar type of concerns. It's difficult. They find it something quite complex. They're all interested in, they all know they have to do something, but they all face similar types of real problems. The first thing is the market reality.
You look at your bank and you say, "Okay, I need to transform, I need to be more modern, I need to be able to enter new market, I need to be able to gain market share," whatever your goals may be, or the bank goals may be. Everybody here has heard about high-profile failures. Yes, it's once in a while, but when you're a bank, that's already too much. That's a question you have to ask yourself: Do I want to embark on this, or do I just put a plaster or Band-Aid on my current system and let it run? Somebody else will take care of it. Outages, we've heard those as well. Bank goes down, it's in the market, there's usually news being relayed on this, and concerns. Again, do I really want to go there?
The C-level tenure overall doesn't encourage you to do this. If you have a CEO in a bank, a CIO, CTO, very often, the appetite for embarking on something that is seen as risky might be slightly less than what we would think. Again, the plaster solution comes in. It might be easier. Short-term thinking, obviously, they have a problem now. They want to fix it now. When you think core banking transformation and bank transformation, you have a longer horizon. Not everybody is able to do that. To this, you add what they hear, what they perceive as the problem of those transformation, the cost. Lots of reports everywhere. Here in the room, some of you produce those reports saying how much it costs, how expensive it's been, how disruptive to the organization of the bank it has been.
Those progressive implementation that seem to go on for a long time. You hear that they've done a little bit and then a little bit and another bit. Unless we're able to bring to them time to value, it's very difficult for them. What they're really coming to us with is, okay, very interested. We need to do something. We're coming at the end of this cycle of our system that was built in the '60s or assembled in the '70s with other systems. How can we make it that we have a better time to value, obviously? How can new Temenos help us build a business case that's going to stand on its two feet?
Because if not, the chances of going to a board and asking for several tens of million or several hundreds of million in some cases is not going to fly. Lastly, we can't introduce risk. Putting all of these parameters together, we said, okay, as we just seen, we've done a lot, we've introduced a lot of new products, we've introduced a lot of new technology. How do we leverage this? We've tried to calculate this. We've tried to figure out what it could mean. This is basically by taking all the technology and all the products we've introduced to the market recently and all the clients' experience. If we try to combine best in class of all our clients, it has to be a combination of several clients' results, if you look at it.
On all the leverage they can have on the various aspects of their transformation journey, you can see that you can dramatically reduce the overall implementation time. Obviously, implementation time means cost. If you look at things, usually, there are some areas where it's difficult to interact. The ongoing operational cost, if you don't do anything, is difficult to move. Now with the introduction of cloud and the fact that your infrastructure can go as much as 10 times down from what Alex said this morning, there's a leverage. There's something you can do to reduce that pillar. Change program, again, might not always be able to change a lot, but it's a once journey, so fine, you don't move it too much. It's okay. Comes the next one, which is the software. Obviously, the more package, the better it is.
Again, there is a one-time cost, or with the new methods and the new services, you can transform that into OpEx if you want to. You're able to do that. You come to the really the two parts where we think we can introduce significant improvements to the timelines and to the cost of transformation. The first one is configuration and deployment. We talked a lot, Alex talked about it, and many of us in the room talked about this constant innovation and this DevOps concept. Everybody talks DevOps. It's been going on for, we have to say, about three years, and we see two to five. We see a lot of different versions of it, and it is all around automation. What we offer is more than automation.
What we offer is really, of course, automation, but continuous improvement, continuous renovation, continuous change of your bank. That brings in itself this box, which is quite costly of configuration and deployment, much more down. Why? Because you bring value constantly. You don't have a pause with massive investment, nothing happens, and then you see that coming through your books. We constantly introduce changes, constantly are able to show to the stakeholders how this can impact their system. Finally, the integration. We talked a lot. Again, this is very technology driven. APIs, obviously, point-to-point solutions are difficult to integrate. API abstract you from that complexity, reducing that, having standard offering, packaged offering. The more package, the more experience. Again, we sell banking.
We talked a lot about technology today. Don't forget, contrary to a lot of the people in that space, the new entrants mostly, it cannot only be about technology. It has to be also about what you bring into banking. That's the maturity. That's one of the leverage, obviously, we use. The architecture, we talked about it. A lot of the new technologies can only be used if you have the right architecture. We've been constantly reviewing our architecture, constantly reviewing our product. The shift might sound trivial. I think Alex mentioned that. We've been running on the cloud for a long time. Running on the cloud is one thing. Leveraging the cloud is something else. For this, you need to be really native. This is what we're constantly doing, making sure we leverage.
Continuous Deployment, I'm not going to come again on this one, it's a key pillar of how you accelerate. If you're able to constantly bring new features, new functions, reducing the cycle of testing for a bank, making sure that when you build a product, you can very quickly, ideally, this is the dream of everybody, you code it in the morning, you deploy it in the afternoon. We know it's a bank. We know it's never going to be like that. Between 6 months and 2 weeks to really see a product, there is a massive saving there. The last point is one I'm going to focus a little bit more on, is the implementation strategy, because something needs to glue all this together. Technology, obviously, maturity and proven product, deployment. How do you make this all as one seamless implementation?
There's been a lot of things in the market. All of our clients have gone through various journeys. We've heard a lot about big bang implementation. For you in the room, if you know, it's like I repack everything and I transfer everything to the new system. That works when you have a smaller bank or when you have a very simple business, because the risk is usually less, the business line is not much, so it's quite easy to do that, but it doesn't fit to bigger bank. It doesn't fit to more complex organization. We've observed that shift, and we're seeing that this is still working, but again, not for all the banks. From that extreme, we move to, okay, this is too difficult. We can't do everything in one go. Let's do bits by bits.
That's where the problem started, because how small a bit you can do, that's the problem. We've gone from people saying, "Okay, let's do a certain type of account first, and then another type of account." That way, you'll never get rid of your legacy. You'll still need to maintain legacy somewhere. You still need to integrate somewhere. That's probably, again, it's like everything. It's a pendulum. We can't do everything in one go. Let's do the minimum thing and add them up. The pendulum was swinging, thinking this is also not viable. Very long journey. Of course, less risky suddenly because you're doing small bits, but how do you make it, first of all, in a shorter time? Because if you start adding bits, it's going to take you a long time to get to the end of your journey.
Also, how do you make sure that you continue innovating? In between happen, and I think driven a lot by the, we'll talk about that with Leumi later, driven a lot by the new entrants who had the luxury to say, "I'm going to build something on the side, and I'm not going to look at my legacy technology. I'm going to absorb myself from technology, either because I don't have it, I'm a new entrant, so that's very simple. Or because within my bank, I'm going to create something completely new, and I will not be bothered with what's around me." That gave us some idea because we said, okay, that seems to be the fastest way to do it.
If you're able to stand a new bank within a big organization, so you still have to cater for the complexity of the organization, but only for what is vital, let's put it this way. If you're able to do that with a new entrant, why not doing it with an existing bank? Why not isolating parts of the business that you can isolate and run while the rest is on your legacy, rather than hollowing the core, putting little bits and pieces? This is when we said, "Okay, that's probably the best option." This is how we came up with the build and renovate option.
From this new concept that we saw with new entrant, rather build then migrate later, potentially, to the progressive renovation, which we felt has a value when you say doing front and back separately, but probably becomes a bit more complicated when you say cut the back in multiple pieces. We felt that this was probably the best combination, and we've put that in play that some of our customers who are doing this, and it's actually dramatically changing the way they're implementing. Again, it's only possible because of the technology we now have available. We're not doing this on our own, obviously. We are not a services company, and this is the person who's running services who's telling you this. I don't have a problem with this. We are a product company.
What we want is that what we deliver to the client, the product, we make sure is implemented the best way possible, follows our best practices. Whatever goes around it, all the other pillars you saw, the integration, the change, all of that, we don't need to do. We don't bring much value add for that, to be honest. We do not have also the pyramids of skill that you would require, so our price would not be efficient anyway. We are very clear on what we do in terms of services. Services to us is delivering our product to the best of its efficiency in the best way. The rest, all these people do it for us. We help them obviously. They're not going to learn our software by magic. Again, the more you add, the more you change your solution, the more education becomes vital.
We've moved away from the good old way of classroom training, having people into rooms, again, leveraging technology even in that space. We now have a full offer that is cloud-based, that is a membership offering with a portal where our clients, our partners, and our own staff are able to get trained, to get certified. We know, by the way, that we have a certain level of understanding and knowledge across our ecosystem, and it's of quality. There's different levels. We still do classroom, obviously, in some cases, especially for project readiness. When you start a new project, there is a need to put everybody in a room and align on the strategy. Continuous learning. It's not only continuous integration, we also do continuous learning through the TLC online community.
The TLC engine, which helps with the entire transformation journey, more around processes and procedures and making sure that that follows you along the way of your implementation, then becomes, for the bank, the repository of where they will hold the new bank, pretty much. That's where we are today with the implementation. Very different from what we used to do. Again, as I said, we've seen a lot of examples, I think a good one is what we have done with Leumi. We have Ilan Buganim here, who is the First Executive Vice President at Leumi and manages data, but also more importantly, is the father of Pepper. I think he will take you through that journey of a new digital bank.
Thank you. Hi. I have the hard work to speak just before lunch, I'll try to do it properly. I'm Ilan Buganim, head of data division in Bank Leumi, I'm the Chairman of Pepper. That is the most important story here, I'll speak about. I speak over all the story, definitely Temenos is very important part of the story, but I'll give the entire story of who is Pepper, why we created it, and where we are heading. Before maybe speaking about ourself and about Pepper, I think that it is extremely important to understand the overall macro situation and why we even started this journey. Because speaking about Pepper, you must understand that we are, Bank Leumi, is actually one of the two biggest, largest banks in Israel. We are the incumbent.
Why an incumbent bank needs at all to create a challenger bank that actually challenge the incumbent, challenge Leumi? It's extremely and very unusual decision that we have made. In order to understand it, we need to understand what happens in the last few decades. When speaking about what happens, I put it in a certain way. You can put it in different ways, but we see that there is one large road with many curves. What happens is that in every junction, every turn of this road, there are people that are very innovative and were able to envision what's happening. There are many companies that weren't visionary enough to take the turn and actually left out of the road.
I believe every story starts with these two guys from Google that actually changed the world to me because they made an order with our information. We had the internet before them, but they made the first order that enables all the things that followed them to happen. Many things happened. I'll focus only on a few things that are important to our story. We see here one of the huge stories of Amazon and Netflix, at that point of time, around 2000 and plus, what happens is that we were introduced two of them with the long tail concept that challenged what was obvious. Companies like Tower Records and Blockbuster. Guess what happens? With the new concept that they introduced, since then we're speaking about Netflix moment. One moment, one Netflix moment that immediately after a few companies which were very strong do not exist anymore.
They cannot do and cannot fix whatever they made wrong in order to get back to the competition. It's very violent. When looking further, we see that it's happening again and again. Here it's Mark Zuckerberg and the revolution that he has made. I stop one moment on this area that is known to all of us. If we're looking back then to 2007, Nokia was definitely one of the biggest companies. 60%, if I remember well, from the stock market in Finland, and they controlled all the mobile world. If you remember well, probably, as I see, most of us have been the same age back then. They tried to make the mobile as smaller as possible. Suddenly came Steve Jobs and said, "No, we want to make the mobile bigger." They said he's crazy.
He's dealing only with 5% of the mobile world, which is the smartphone. Back then, less than 5%. Let them fail. What happens is that very fast they understood that it's threatening them, that they are going to be impacted severely because of that. Then they try to change very slow, always late. If you remember, they made many changes. For example, they decided to create their own operating system. Back then, there were two operating systems, one for iOS, one for Android, each one with 600,000 applications. They needed to go to 600,000 developers to convince them to develop also for Nokia. Definitely they didn't understand the market. The market was violent to them. They purchased afterward Microsoft operating system, and in the end, they decided to go to the operating system of Google. Everything was too late, and they lost the market.
They lost the market because they didn't see what happens, they didn't do the right activities on time. I can speak about each one of these junctions. Really, it's an hour that we can speak about it. I want to go fast and to speak about our story. When looking over the revolutions, you see that the banking area is the last one to come. The revolution was all over, banking were a bit out of it, they are changing slow. Most of the incumbent banks changing slow, changing a bit their system. They don't understand that there is a real threat to their business. Today we see more and more challenger banks like Monzo, Pepper, Number 26, they are saying, "Yet, you know what? They are targeting only small portion of our customers.
We are still strong, we are better, we will do very well." We are saying, you know what? I'm saying to the incumbent banks that these challenger banks are actually targeting their roots. The millennials that are actually coming to this banking, we'll speak about them, are moving, they will be the new customers of the new banks. The leaves of the new tree will come from these roots. Guess what? They will have a big problem. We knew it, we saw it in Leumi four years ago, we said, "You know what? We want to make our own challenger bank, even as an insurance to our business." Let's see what we have done and what are the results. We said for ourselves, first of all, we want to build a bank that people love because people do not like banking.
They do not like banks, definitely, especially after 2008. Let's face it, banking is painful. Why it's painful? Before saying why it's painful, so you just to see these pictures. 71% of the millennials would rather visit dentist than listen to their banks or go to the branches. By the way, I saw a survey in America that said that the only things that people hate more than going to the branch is going to the dentist, going to cemetery, and sell their houses. We are coming. Why it's painful? Think about it.
With all the investment of the big banks in technology, still we have lots of branches, lots of bankers in the branches, ridiculous fees that you need to pay just to manage your current account because there are lots of people behind it, thousands of people behind every current account. More important, most of the customers are totally confused by the banking products. They do not understand it. They are totally confused. It's amazing how they are confused, especially when you are dealing with millennials. We wanted to do something that is totally different, dramatically different from what exists today. In order to do that, we knew that we cannot just take something and change it a bit. We need to do probably almost everything from scratch different.
Speaking about Temenos, I can tell you that we actually observed and saw what happens in the market, and we said, "You know what? We have a core system, Leumi core system, 40 years of investment into it. Maybe we'll take that, and we'll just put a nice layer on top, and maybe we will confuse our customers. They will see a nice application, and will think that it's a new bank, and maybe we'll acquire them." We understood and we saw that it's not working, even in places, I don't want to say the names because not to insult other banks, but few banks did it and failed. We decided, we understood that we want to do something totally different because we want to achieve totally different targets.
By the way, when speaking about what is the biggest advantage of these challenger, more techie banks, I'll speak about many advantages. One biggest advantage is their ability to move fast because the market is always changing. Only if you can run and if somebody Because we're doing wonderful things in Israel. I can tell you that all the big banks try to imitate and to copy what we are doing. It takes them a year to copy what we are doing in two months. We are trying to do more in this time with less budget, with more innovative people, and this is the competition. We know that everybody will try to copy.
With old system, you can do nice things, but it costs you fortune and it takes you time. Speaking one word about America before we are getting into maybe what's special in Pepper. We did nice thing in Israel, and we will speak about it. We are checking also our ability to go to America with that because we believe that in America is the right time to come with innovative products. We went there and we checked what happens, and we saw that everything is ready for this challenger approach, the new bankings, the real-time banking, and the people understand it. If you are asking millennials, they do not understand the banking there, definitely. They are not loyal. They do not have a problem to get banking from Amazon, Google, and Apple. They grew up on these companies that gave them a wonderful experience.
Now you cannot confuse them by saying that the incumbent banks are better experience for them with their branches, in the places that they need to go with their signature, that they not have signature at all, and to sign on documents that they do not understand. We know this is a big opportunity, and with what we have done, we think that it fits perfectly to there also. What is Pepper? Speaking about Pepper, first of all, it is a mobile bank. Looks obvious today. Not obvious at all when we are looking four years backwards when we started and most of the people did their banking activities in websites and in the branches. We decided that the future is mobile. It also enables you to be much faster because you have one channel. It is much easier to adopt it and to move very fast with them.
It is a digital-only bank incubated in Bank Leumi, and when we say incubated in Bank Leumi, we needed to do also in the bank something totally different. We created a separate tech entity inside the bank to be able to carry this burden separate from Bank Leumi, and I will speak how these two journeys are also aligned in the future. We needed to do something also with the culture, with the people, with innovative people. We needed to create everything from the beginning. We launched in 2017, and we have since then the highest market share of new banks accounts, which is not obvious at all. We, the new bank in Israel, recruit more accounts, more new accounts than any other big bank in Israel, and it is growing and growing comparing to them. I can tell you that we introduced new products.
I am not sure if it is good to say or bad to say, but we have a waiting list even now of around 4,000 accounts that wants to open, and the waiting list is because everything is digital in the process, but the regulation force us to do a small video chat. This small video chat create a huge line of a waiting list because we are adding, trying to do our best. We are 24 by 6. Most of the people are doing it in the middle of the night, but still, there are many joiners. Of course, that we are ranked as part of the top mobile banks worldwide. Let us see few concepts.
When we think about banking, we understand that it's time to move forward and discover a whole new world. A banking world that speaks your language, is beautifully designed, and provides a unique user experience unlike anything you've seen before. Meet Pepper.
Wow.
Free mobile banking that will transform everything you thought you knew about banking. Pepper is 100% mobile, no branches, no checking account fees, and a bunch of personal updates and insights to help you better manage your money. What's inside the Pepper world? A totally different banking experience. Pepper's technology is based on contextual artificial intelligence. Sounds impressive, but what does it mean? A news feed packed with content relevant to you. Imagine real-time updates on all your total cards expenses, your account movements after weekends and holidays, comparisons with the banking activities of people just like you, instant alerts about duplicate charges, articles, consumer tips, and that's just the tip of the iceberg. Of course, all this is on top of full account management, a checking account, a credit card, cash withdrawals from any ATM, one-click loan applications, and smart savings. Convinced?
Want to join Pepper and experience a completely new customer journey? Just pick up your mobile phone, and in less than 10 minutes, you can have your very own Pepper account. Free mobile banking. That's pretty cool.
Let's speak about few elements that we saw in this short movie. When speaking about Pepper, it's not like when we're speaking about growing banks like Marcus in America. They're focusing only on deposits or any other single product. Pepper is an entire bank with everything that is needed in order to create a very good engagement between this bank and the customer. In order to do that, you need lots of banking products. You need checking account, deposit, loans, credit card, check, saving, P2P payments, investment. We have three applications, as you saw. One is for moving money between peer to peer, one is the bank in itself, and one is investment application that we're launching only this month. What are the things that we emphasize on Pepper? First of all, as I said, it's all mobile bank. Everything is in the mobile.
Think about it. We have five senses. If you would like to use only one sense, you really need to excel in this sense, and that's what happens in Pepper. We don't have any other channel. Or any big channel. We need to excel in this channel that's called mobile. It shouldn't be just an application on a mobile. It needs to be extremely good application when we're not trying to compare ourselves to the other banks, but we're trying to compare ourselves to the big tech guys like Apple, Google, Amazon. Facebook, of course. These are the people or the companies we're trying to learn from. Banking-wise, we're saying there are no fees for a current account, ever. Of course, that is cannibalization of the old bank.
Think about it, we are doing the same banking without the so many troops that are needed in order to make the banking. There is a reason why we can afford this kind of banking. An all-new technology. Why an all-new technology? As I said, we want to be a real-time banking. We want to do banking in a totally different way. When you take a loan in Pepper, you get it in few seconds. You take a deposit, you get it in two seconds. You swipe your card somewhere, you will see on your application immediately that you swiped your card, where, and how much it cost you. You are going to an ATM, it will tell you how much money you withdraw, what is the fee that you paid in this ATM, no matter where is it in the world.
Actually, in order to do that, you understand that you cannot use the old technology that the bank says. Because of that, we had this, to me, one of the biggest decisions is what is the right core in order to create this banking? I back then led this process of choosing the right core banking that will fit this journey. I can tell you that there were not too many hesitation for me to choose Temenos because I came from By the way, before Leumi, I was in Amdocs 15 years. I know the tech world very well. I was almost everywhere in the world, selling to companies, working in the technology. I understood what is the main difference between a product and a solution. We have a solution. We have a very good solution to core system in Leumi, 40 years of investment.
Think about it's insane what the banks are doing. They are investing lots of money into a software of a product that has only one customer, only single customer. How can they excel when they have only one single customer? We understood that we don't want it. We want to choose something else. I wanted a product. Why a product? I wanted that when I'm running and trying to recruit more and more people to my bank, I want that someone will think about and will develop more feature and will go forward even faster than myself. This is the sense of choosing a product. By the way, there are many solutions in the market, many companies that provide core system.
Not all of them behave like products. I don't want to speak about them, but that was one of the focus that was interesting to me when we chose [in the Temenos]. I can say, looking 4 years backward, that we didn't choose a provider, we chose a partner that went with us into this journey, hear what have heard, what are our problems. I was happy to see that we started in release 15, now we are introduced release 18. I was happy to see that many of the things that we need in order to continue and compete and to be number 1 in what we are doing, so many features, many functionalities are introduced in these versions. From data needs, real-time in extracting of data to our data lakes and loan origination, new process and so on and so forth.
There are lots of things that have happened there, a continuous upgrade and so on and so forth. We were happy to see that 3 years after we started, because in the beginning when you start, you don't know that you have made the right choice, that it's going on the right direction with us. We need it even further because we intend to do in the U.S. a cloud-based solution, and it's important for us to go also to this direction. Of course, that it's not the only technology that we have chosen. We couldn't go to public cloud back then, but we have done a private cloud with VMware, and every single technology that we chosen back then was with lots of thoughts. The next thing that we have done is a bank that is totally personal.
I can tell you 1 thing, if you open, if 3 people has an incumbent bank, an application, a banking application, they will open it up. They will see exactly the same application, but with different numbers, your numbers. It's personalized because I have in my current account X amount and someone else has Y amount. When few people will open Pepper, they will see a totally different application because it's personalized. It has a feed like Facebook or Instagram, and this feed is totally adapted to you. It got your content that you are interested in. We are checking. We have a big data to check in order whether you are reading these articles or not in order to be more focused about your need. The statistic that you get are according to your activities.
The suggestion and the promotions that you have are according to your behavior. Even proposals like movies and other benefits that we are giving to you will be according to your behavior. Of course, we are not where we want to be, and we are trying to refine ourselves all the time. Personalization and simple and smart user experience is one of the main focus. By the way, also our language is very adapted to people that do not understand banking. It's very simple, understood, clear, without small lines, without hidden lines. Everything is focused to be very simple. Just recently, I think, the regulator changed for us a few regulations that enable us to open a new bank account also for young that are 16 years old and on.
Beforehand, everybody that want to open a new account in a digital bank needs to go to open an incumbent bank, and just the second account needed to be in the digital bank because they needed the face-to-face with a banker in the branch. It's changed. Since that changed. By the way, on the same day that the regulator changed the regulation, we launched the product. Same day. It's never happened in Israel, at least. Since that day, as I said, there is a boost in new accounts of youngers that are coming to us because the products are very adapted to them. We were focused that if someone is 16 years old, they will not need his parents in order to register to the bank. It's his own decision. We will explain him exactly what he's doing. He doesn't need approval, guarantees or whatever.
The structure of the account adapted to youngs and according to the. It's debit cards. They cannot go into overdraft. We explain them exactly what they are doing. Why? Because we want them to have a very nice experience from the beginning. You saw banking, people are not living it too much. When they have a very good experience in the end, these young guys that do not have much money today, tomorrow will be the primary accounts in the banking. We are focusing long-term engagement and not a very short engagement or a product engagement. This is maybe the differentiation between Pepper to other banks. Speaking about how it looks like, as I said, three applications, the banking application, Pay, which is peer-to-peer payment, and Investment, that is a beautiful application that we are launching just now.
We have our own front-end service layer, that connects the front-end to the back-end, big data infrastructure and technology that is based on Temenos core banking, VMware and big data infrastructure. Of course, that we brought over the knowledge that we have from Bank Leumi in order to do the banking also in Pepper and to challenge it, of course. Speaking forward a bit about what we intend to do. We saw that we created a very nice bank in Pepper with a new core, and we see that in Bank Leumi we have a problem with our core. The question is, how much time you can continue with such huge investment every year for one single customer, Bank Leumi? Bank Leumi is developing this old core and cannot move very fast because it costs fortune only for one customer, Bank Leumi.
We understood that we need to do something a bit different and to use the asset of Pepper. It's working. He has less customers than Bank Leumi, so definitely it's opportunity. We are taking now the core, and we intend to enhance it with the features and need of Bank Leumi in order that in two, three years' time, Bank Leumi will also be connected to this new core. Actually, we remove all the old core with all the old technology that align and that we are using today. This is an amazing journey that we started just now. This year we started the, or last year we started the program, and it's extremely important, I would say, for the future of Bank Leumi. That's all I have to say about Pepper. Thank you very much and enjoy your lunch. Thank you.